Costs of outdated software
What is the cost of using outdated business software?
Across the world, countless organisations are using old, non-integrated, user-unfriendly and outdated software solutions to run their business. This inevitably leads to inefficiencies in today's fast-paced world of demanding and impatient customers. Surely you know better solutions. But for some reason, you are not yet ready to implement this knowledge. Do you have any idea how much it costs to use these outdated business software solutions while you wait?
Modernisation cycles
In the western world, companies modernise their ERP and CRM solutions every 8 to 10 years. This usually takes the form of an upgrade or complete replacement. In some industries, this number is tending to increase due to the current crisis. However, another reason is that many organisations are postponing these projects - even when they should be taking action.
Why is the modernisation of company software being postponed?
There are several reasons! Apart from the question of who is to blame for the fact that the old solutions no longer fit. And the complexity and expense of replacing them. And is afraid that if a project fails, their own CV might look bad.
How does such a delay affect business activities?
The list of consequences is long. Here we have selected a few issues that can have a significant impact on your business:
- Maintaining high total cost of ownership ('TCO') inevitably associated with using on-premise software solutions based on your own server hardware and internal system management.
- The costs of your current poor or dysfunctional business processes will continue. And will even increase if you don't fix these weaknesses quickly. This can lead to negative trends in customer and employee satisfaction. And ultimately to the loss of customers and the departure of employees.
- By delaying modernisation with your current manual processes, you are making yourself dependent on the knowledge of your older employees, who will soon be leaving your company when they retire.
- Perhaps most importantly, you're missing out on the continuous innovation we're seeing in cloud-based solutions today. All the leading ERP and CRM solution providers have shifted their R&D investments to their cloud products. So if you are still running solutions on your own premises, this means that the availability of new features and innovations will slow down. And eventually stop altogether.
Our conclusion
Using outdated software leads to inefficiencies, increased operating costs and a slow rate of innovation. Companies that do not modernise their software miss out on continuous development and risk losing customers and employees.
Modernising your business software requires a serious investment. But continuing to use outdated solutions can potentially cost you a fortune!
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